Fed raises interest rates and sets plan to shrink $4.5 trillion balance sheet ‘this year’

The Federal Reserve lifted a key US interest rate and laid out a plan to shrink its massive $4.5 trillion balance sheet starting "this year", a pair of moves reflecting its view that an economic expansion now entering its 9th year no longer needs so much propping up.

The Fed as expected on Wednesday raised its benchmark federal-funds rate by a quarter percentage point to between 1% and 1.25% - the 3rd increase in a year and a half. The aim is to raise the cost of borrowing for consumers and businesses to ensure the economy doesn't overheat and spark a bout of inflation.

More news, Fed raises interest rates and sets plan to shrink $4.5 trillion balance sheet ‘this year’

Source : 
1) www.marketwatch.com